Regional Tourism Workshop

Hotel Bellevue, Ohrid, Macedonia, September 23, 2008

Alexander Babinov

RCI

Bulgaria

Quality Mark: Practical implementation Experience and results from Bulgaria

Getting goingRunning the programmeThe costs of implementationMeasuring Results

Case Study

Why did we do it?Why did we do it? Increase competitive advantage Increase competitive advantage Attract a new type of touristAttract a new type of tourist Tell travellers a business is professional & offers a Tell travellers a business is professional & offers a

true Bulgarian experience true Bulgarian experience

Benefits forBenefits for our tourism providersThe systems behind the Quality Mark will help

to improve quality Improve operator’s market position Improve profile & attract more profitable

customers

Began as a USAID programmeHired international consultantsLater we set up a new independent industry body to own & manage the Quality Mark Set up a Licensing Committee

Set up Assessment programme run by independent professional AssessorsScorecard & the feedback process

Independent customer researchMystery checks

How we started

Awards of three grades….

…roses of distinction

bronze, silvergoldGrades to reward excellence

The LOGO A modern rose of natural beauty & eleganceA coin inspired of ancient Thrace A coin of precious metal evoking quality, substance & value

Marketing

Web sitePrint GuideExtensive media & PR activity:articles“Famil” Trip for 6 journalistsdirect mailTrade Shows and special exhibitions

Marketing

Launch – ceremony

Study Trip

Governance

From the beginning, how you understand your Quality Mark could be owned and managed for ongoing sustainability

Once underway, begin to Research governance models

Establish the best organisation and processes to protect your Quality Mark

Options for running the programme

Establishing an NGO, with a stand alone office, with a small teamLed from within an exiting organisation (Tourism Agency)Some sort of joint-venture, or PPP (Private - public partnership)A “not for profit organisation or an AssociationCompany funded by the private sector (usually a risk as independence for important for credibility)The sorts of factors you will need to consider are:GovernanceLegal Status of organisationIP of Quality Mark, who owns it, who manages the programmeProtection of protocols

Running the programme

Funding profileRelationship with donors / funders / partnersCosts of running the programmeOpportunities for self generated incomeContractual agreements for the delivery of services Human ResourceNumber of Staff, roles and responsibilitiesOperationsDelivering Business PlanLicensee systems, processes and services Assessors’ programmeIP managementPromotional campaigns, Services to licenseesEstablishing an Association

Programme firmly establishedAssessors trained and robust Assessment programme

Critical mass of licensees…:with more applying 10 accommodations with Gold Award, 24 accommodations with Silver Award 36 accommodations with Bronze 70 Total Awards Roses of Distinction 15% failed 10 pending licenses

Results a year on….

Accommodation owners reported increase in higher paying guests

Accommodation owners reported US$17,397 , an average of 18% increase, as a result of introducing 11 new services and attracting 401 new tourists

Business from local tourists (guidebooks were only distributed within the country) has increased by approximately 11%

11new jobs created, 67 sustained

Increase in revenues

All materials producedAttendance at 2 Fairs (Berlin & Hamburg)1

International journalists Famil trip High in-country publicity achieved, media articles

published

Created Internet Site (informational) Page Visits not monitored

Marketing

Training for Operators (workshops and materials) 10 day Study Trip to Slovenia & Croatia Accommodation owners reported benefits of training and capacity

building Two tourism operators participated in EU standards certification

programs, HACCP

Training for Assessors (workshops and materials, ongoing training) Assessors learnt new skills and boosted revenues

Training in organisational development – Steering Group Licensing Committee

Training & Skills development

Fully functioning Non-profit organisation established, registered

describe

QM protected for IP

Institution building / Governance

Minimum one year is needed to have some impact It is suggested that 8 months is needed to lay the foundations for the

program that will leave sustainable legacy going forward with a fully functional organization owning, managing and extending the programme

Core in-country team of two people is recommended - one leading the programme and working with RCI advisors, one managing the Assessment and certification element of the programme and sub-contracts.

(Note Assessors manage all of their own admin liaising with accommodations)

Administration person is recommended. Many of the elements can be outsourced - branding and marketing, Assessment, and training. This can be managed through tenders, co-partners or NGO’s

Time & People resources

Assessments (outsourced) - at least 50 assessments must be done in this period

Cost recommended US$300 per assessment based on 1.5 days per assessment (4 hour assessment, 4 hour preparation and writing final Report, half day for travel

TOTAL US15,000

Expenses (70 x US$50 =US$3500)Note consultancy - training for Assessors (some provided by RCI or outsourced but estimated at 13 days based on 2 days preparation, 3 days training, 3 days on road with Assessors, 2 days travel, 2 days auditing initial Assessor reports, 1 day report to Licensing Committee

TOTAL US 3500

Costs

Based on design of Quality Mark, corporate needs such as Folders for Information Packs for participants, Assessors, Media and stakeholders, Presentation stands

Promotional materials: design and printing of general Flyer, Postcards, Car stickers, Certificates, Scorecards Quality Mark Print Directory (outsourced) (recommended to be sponsored to reduce costs)

TOTAL COST US$32,000 Internet site with booking portal being provided by RCI, country can choose to

create new site or work with existing provider such as local Tourism Organisation to reduce costs

TOTAL COST US$19,000

Media / public relations US$2000Launch Ceremony US$4,000

DiscretionaryInternational Fair participation (2 different fairs), where the Quality Mark was exhibited (US$27,000)

Marketing materials (outsourced)Other

web site

Study Trip

Study Trip (based on 10 days, 16 participants) Total USD 23,000

Legal costs

Protect the Quality MarkCheck the protocolsLegal Costs US$2,500Intellectual Property US$2,500

Running office todayStaffRevenue

THANK YOU